October 27, 2018 admin 0Comment

Loans, all you need to know.

Do you want to start a business but do not have enough money to invest? Let’s say the truth is a fairly common situation because many, affected by the crisis, can not find a job or have lost it and therefore have no funds for self-financing. In this case the non -repayable loans can be the ideal solution. What is it?

What are non-repayable loans

Non-repayable loans are money provided by public bodies and public or public-owned financial companies. The aim is to support the creation of new business activities, scientific research, or help companies already set up to overcome a difficult time or face a restructuring useful for technological renewal.

Since they are non-repayable loans they do not have to be repaid and do not generate interest. Precisely because of the peculiarities that have been listed, these funds are usually provided by European, state, regional or local bodies in order to support the economy. In the last three cases, often these are contributions established by the European Union and then diverted to the various local entities, this especially because internally establish economic aid to companies can be considered an activity contrary to the European Union regulations as they can oppose free competition.

How do they work

Non-repayable loans are usually limited to a total pre-established amount, therefore certain procedures established by the issuing institution must be followed in order to re-enter the pre-established amounts. The procedure provides for the issuing of a tender and therefore the consequent possibility for those who are in the conditions foreseen in it to submit their application within the time limits provided. Once the deadline has expired, a commission, appointed with pre-established and transparent criteria, will proceed to the scrutiny of the same and to draw up a ranking of merit, this activity usually takes quite a long time. Those who are in the ranking and fit the budget will be able to access the funding.
In order to submit the application, the requests for documents indicated in the announcement must be respected.

It is usually also required to draw up a business plan, ie a detailed document in which not only describes the activity to be carried out, but also the catchment area that we believe we can satisfy with our own business and therefore the economic return expected. It is also necessary to indicate the costs that have been incurred to start the activity or the budgeted costs to start it, because in most cases the sums paid correspond to a part of the money that is used to start or refund money already spent and invoiced for the activity itself. Obviously, following the provision, checks will be possible to assess whether the activity has actually started and the invoicing of the costs incurred.

Who can request it

Non-repayable loans do not go to help companies in a global way, but in a targeted way and from time to time different subjects and projects are supported. For example, over time, aid has been approved to support the economically depressed areas, in this case the requirement to access is of a territorial nature and you receive help to start or to continue an activity, for example in the south, regardless of the type of activity. There was no lack of aid to support certain sectors, such as agriculture, or with joint criteria, among the last calls in fact there was that in aid of young people who want to devote themselves to agriculture. In this case, the necessary requirements are personal and sectorial. In the past, calls for non-repayable loans were also issued to support female entrepreneurship. It should be noted that this aid was also provided for corporate business structures in which men were present, but obviously the prevalence had to be female.
When the personal data requirement is required, usually “young” means anyone who is not yet 35 years of age, but different requirements may be established from time to time. It is essential to read the call carefully to check if you can have access to the benefit and especially the documents requested because the lack of documents can undermine the practice.